For Financial Institutions
Are You a Financial Institution Looking to Participate in IOLTA?
FOR FINANCIAL INSTITUTIONS
Since 1983, Delaware’s IOLTA program has contributed over $33 million to Delaware’s legal aid agencies to provide legal services to the poor. These funds would not be possible without the support and participation of Delaware financial institutions. This year over 25 Delaware financial institutions maintained an average of over 870 IOLTA accounts in the state.
According to estimates, there were more than 240,000 Delawareans living at or below 200% of the federal poverty level. With the effects of the Covid-19 pandemic, the number of families in need has increased further. Delaware’s three legal aid agencies are essential to assist these families with their civil legal needs such as housing-related issues, food insecurity, domestic abuse and other public benefit programs. To ensure that IOLTA funds generate as much as revenue as possible for this assistance, in 2010, Delaware amended its IOLTA rules to include two significant requirements. First, Delaware attorneys are required to hold all IOLTA-eligible funds in IOLTA accounts. Second, IOLTA funds must be maintained in financial institutions that provide so-called “interest rate comparability” for IOLTA accounts. Interest rate comparability means that the interest rate payable by financial institutions for IOLTA accounts must be comparable to rates paid by the same institution on its other accounts with similar attributes. These rule changes have been critical in generating revenue to maintain funding to legal aid this year.
Financial institutions operating in Delaware and approved as IOLTA-eligible institutions remain our significant partners. The Delaware Bar Foundation thanks our Delaware IOLTA financial institutions, and especially our Prime Partners, for their ongoing participation.
Became a Prime Partner Financial Institution
To be a Prime Partner, eligible financial institutions have elected to offer a premium rate on IOLTA Accounts, going above and beyond the rule requirements and partnering with the Foundation to ensure the success of the IOLTA Program. IOLTA accounts maintained at Prime Partner institutions generate additional funds to provide civil legal services to citizens in need in Delaware. The Foundation extends a special thanks to these banks for their support of the IOLTA Program. To become a Prime Partner please contact Megan Greenberg at email@example.com.